Aboitiz Power approves P10-b bond sale in Q3

Manila Standard Today
By Alena Mae S. Flores | Jun. 19, 2014 at 12:01am

Aboitiz Power Corp. approved the sale of P10 billion worth of fixed-rate retail bonds in the third quarter to finance ongoing power projects and other capital expenditures.

“At its special meeting today, the board of directors of Aboitiz Power authorized the issuance, in one or more tranches, of peso-denominated fixed-rate retail bonds up to the aggregate amount of P10 billion, inclusive of any oversubscription,” the company said in a disclosure to the stock exchange Wednesday.

Aboitiz Power said the bonds would be issued in minimum denominations of P50,000 each and in multiples of P10,000, thereafter. The company tapped BPI Capital Corp. as lead arranger and underwriter of the transaction.

“Proceeds of the bond issuance will be used to replenish working capital, partially fund ongoing projects, and for other general corporate purposes,” Aboitiz Power said.

Aboitiz Power president Erramon Aboitiz earlier said the company was looking at investing up to P80 billion in greenfield and brownfield projects across the country this year.

“This is just part of our ambitious plan to expand our power generation capacity by about 2,000 megawatts over the next five years,” Aboitiz said.

The investment would double Aboitiz’s current power generation portfolio of 2,300 MW.

Aboitiz Power’s subsidiary Therma Visayas Inc. recently signed an engineering, procurement and construction contract with Hyundai Engineering Co. Ltd and Galing Power Energy Co. Inc. for the P41-billion 300-megawatt coal-fired power plant in Cebu.

Aboitiz Power also has projects in partnership with other power players, including the planned 600-MW coal project of Redondo Peninsula Energy Inc. at Subic Bay Freeport, the 400-MW expansion of the Pagbilao coal plant in Quezon and the 300-MW Davao coal plant due for completion by the first quarter of 2015.

Aboitiz Power is also constructing more than 100 MW of hydro capacity around the country, including run-of-river hydro plants such as Tudaya (14 MW), Tamugan (12 MW) and Sita (28 MW) in Mindanao.

Aboitiz Power is also looking at diversifying its power generation portfolio to include solar power projects. source